AUSWR
The Association of U S West Retirees
 

 

 

Dreams of trips to Alaska disappear
By Sara Burnett
Rocky Mountain News
Saturday, March 10, 2007

For the 25 years he worked for U S West, then Qwest, Donald Keller contributed the maximum allowable amount -- 16 percent of each paycheck -- to his 401(k), all of it in company stock.  Putting away that much money took some sacrifices.

"We didn't fix out house up classy," Keller said this week from the home in Helena, Mont., that he shares with his wife, Ruth.

He and Ruth, who also worked for U S West, bought one new truck, in 1989.  Every other vehicle they bought used.

They did it with an eye on the "magic number" -- age 55 -- when they would retire, cash out and begin enjoying summers in Alaska.  And for most of their careers, they did it with confidence.  U S West had been a monopoly, a seemingly guaranteed moneymaker, for decades.

Ruth retired in 1999 and cashed out her 401(k).

Don's timing wasn't as good.

As Qwest stock plummeted a few years later, Don tried to sell.  But every time he dialed the phone to make a transaction, he was greeted by a recorded voice saying all accounts were frozen.

By the time he retired in 2002, Don had lost $330,000 -- about 87 percent of his account value.

Now he and Ruth get by mainly on her savings.  Instead of summering in Alaska, they must carefully budget.  They're not destitute -- but they are angry.

"We figured we were going to be the American dream.  We really did," Don said.  "We didn't think this could happen."

What burns him most about Joe Nacchio, Don added, was the way he and other Qwest executives constantly "hyped" the stock, assuring employees and other shareholders that all was rosy, even while selling their own shares.  At no point did Nacchio recommend that his employees diversity their holdings, as Nacchio's attorneys have said he was doing when he exercised his options, Don said.

"He had a cash cow," Don added, "and he was taking care of it."

http://www.rockymountainnews.com/drmn/tech/article/0,2777,DRMN_23910_5407935,00.htlm